Lawsuits Make Lenders Pay for Inaccuracies in Your Credit Reports

Lawsuits Make Lenders Pay for Inaccuracies in Your Credit Reports

With lenders using a composite FICO score to decide whether to extend credit, finance a car, or offer a credit limit increase, consumers are advised to monitor their credit reports. In 2020, consumers are expected to know the items on their credit report and to dispute damaging or derogatory entries placed in error. All consumers expect their Experian, TransUnion, and Equifax credit reports to be accurate. Inaccuracies in credit reports have cost consumers their jobs, their motor vehicles, and literally thousands of dollars. Class action lawsuits attempt to hold credit bureaus, banks, and credit card companies accountable for their careless inaccuracies in credit reporting.

Inaccurate Credit Reporting by Bank of America

The Bank of America National Association repeatedly breaks California law by entering false information on consumers’ credit reports. A consumer discovered that the Bank of America placed a bankruptcy of a consumer with a similar name on his credit report. Bank of America is also found in violation of the Fair Credit Reporting Act. Bank of America routinely closes the bank account of each consumer who files for bankruptcy. Bank of America habitually fails to properly identify account holders when placing entries with credit bureaus. Bank of America places entries on credit reports with similar social security numbers even when the consumers' names are entirely different. The lawsuit alleges that Bank of America acts with disregard for the rights of its customers.

Arizona and California Late Mortgage Payments and Deficiencies

Anti-deficiency laws in California prohibit credit bureaus from posting the balance of a mortgage loan after a foreclosure on a consumers’ credit report. Mortgage companies may not collect payments from homeowners who already lost their homes through foreclosure under California law. Arizona law prohibits lenders from posting late mortgage payments on consumers’ credit reports. Lawyers are seeking clients in Arizona and California who will benefit from a class action lawsuit to remove late mortgage payments or unpaid mortgage deficiencies from their credit reports.

Improper Accounting by PayPal Credit and Synchrony Bank

A class action lawsuit filed by a consumer in the United States Central District Court of California claims that PayPal Credit and Synchrony Bank did not accurately credit his account when he returned a “promotional purchase.” Plaintiffs open accounts with Synchrony Bank because they offer interest free credit if purchases are fully paid within six months. He was not satisfied with his purchases and returned them for a full refund, but PayPal Credit and Synchrony Bank did not refund his credit for the return. The defendants did not refund the purchase price, but they made confusing adjustments to his bill that left him paying interest on his account even though he purchased no merchandise.

Fully Paid Car Loans Reappear on Credit Reports

If you've paid off your car only to have your car loan reappear on your credit report as unpaid and past due, attorneys interested in pursuing a class action lawsuit to hold the credit bureaus and lenders responsible for errors on their clients' credit reports would like to speak to you. The loan may reappear on your credit report if you paid the car off early. The lender's computer may try to collect payments from you after the car has been paid off based on the original duration of the loan. It's also possible that the lender simply did not mark your loan paid in full. Under the Fair Credit Reporting Act, federal law states that credit bureaus have a duty to all consumers to report their accounts accurately.

Capital One COVID-19 Pandemic-Related Errors

Capital One granted its customers a financial extension as relief from the hardship inflicted by the COVID-19 pandemic without telling them that the extension would lower their credit scores. A class action lawsuit in the United States District Court of California seeks relief from Capital One for the negative impact to card holders' credit reports. Capital One settled a lawsuit by 140,000 credit card holders whose social security numbers and 80,000 whose bank account numbers were breached, for $671 million. A class action lawsuit has been filed in the United States District Court of New Jersey for refunds to Capital One Venture card holders who purchased airline tickets for flights canceled due to the pandemic.

Class action lawsuits and class action attorneys investigating litigation are holding banks, lenders, and credit bureaus responsible for accurately reporting consumers' credit scores and line items on their credit reports. Class action lawsuits bring consumers refunds and compensation for damages due to an inaccurate credit report.

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